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Understanding your GCC employment contract before you sign

7 June 2026·4 min read

A friend of mine signed a UAE employment contract three years ago without reading it carefully. Last month she tried to leave for a better role and discovered three things. Her notice period was 90 days, not 30. She owed her employer reimbursement for her flight and visa if she resigned within 3 years. And a non-compete clause prevented her from working for any competitor in the UAE for 12 months. She lost the new offer. The signature you put on a Gulf employment contract shapes your career for years. Spending an hour reading and understanding it before signing is one of the highest-return uses of your time.

The legal framework varies by country and zone.

The basics that should always be clearly stated. Your full name, the company name and trade licence number, your job title and department, your reporting manager, your salary breakdown including basic, allowances and benefits, your work location and working hours, your start date, your contract type and duration, your probation period, your notice period, your annual leave, your end-of-service gratuity terms, and your applicable law and dispute resolution. If any of these are vague or missing, ask for them to be added before you sign.

Probation period. UAE allows up to 6 months probation. Saudi allows up to 90 days, extendable to 180. Qatar allows up to 6 months. Kuwait, Oman, and Bahrain allow up to around 3 months. During probation, both sides can terminate with shorter notice. Check the exact duration in your contract.

Notice period.

The most commonly misunderstood clause. Standard notice in the UAE is 30 days. In Saudi it varies from 30 to 60 days depending on contract type and salary frequency. In Qatar, typically 30 to 60 days. Check whether the notice is calendar days or working days. Check whether either party can pay in lieu of notice. Check what happens if you breach the notice period, is there a penalty or compensation owed.

End-of-service gratuity.

This is your statutory severance pay accrued during your employment. In the UAE, it is 21 days of basic salary per year for the first 5 years, then 30 days per year after that. In Saudi, it is half a month's wage per year for the first 5 years, then a full month per year after. In Qatar, 3 weeks of basic salary per year. Each country has its own formula — see our deeper guide on end-of-service gratuity. Read the clause carefully, because some employers try to limit gratuity calculation to just basic salary rather than the inclusive package, which is sometimes legal and sometimes not depending on jurisdiction.

Non-compete and non-solicitation clauses.

These are increasingly common in Gulf contracts, especially for senior roles. UAE law allows non-compete clauses up to 2 years and limited by geographic area and industry, though enforceability is mixed. Saudi non-competes can also be enforced but courts have varied views. If your contract includes a non-compete, negotiate to limit it to a reasonable area, sector, and duration. A non-compete covering all of the GCC for 2 years is extreme and often unenforceable, but you do not want to test it in court.

Visa and recruitment cost reimbursement clauses.

Working hours and overtime. Standard working hours in the Gulf are 8 hours a day, 48 hours a week, reduced to 36 hours during Ramadan. Overtime should be paid at 1.25 times the normal rate, or 1.5 times for night shifts and rest days. Some sectors are exempt from overtime, including senior management and certain professional categories. Confirm whether your role is overtime-eligible.

Annual leave and public holidays. Minimum 30 calendar days per year across the UAE, Saudi, Qatar after your first year. Check whether the contract gives you the statutory minimum or more. Confirm how unused leave is paid out at end of service. Confirm how public holidays are handled if they fall on your weekly off.

Medical insurance and dependents. In the UAE and Saudi, employers are required to provide medical insurance to employees. Dependents are sometimes covered by the employer and sometimes paid by the employee. Confirm which is the case. The insurance tier matters, basic insurance has limited coverage and high copays, comprehensive is much better.

Red flags to watch for.

Vague job description. Salary expressed only as a total without breakdown of basic vs allowances (this affects gratuity). No defined notice period. Confiscation of passport (illegal across the GCC). Verbal promises that contradict the written contract. Clauses requiring you to pay back unspecified amounts on resignation. If you see any of these, negotiate or walk away.

If in doubt, get help. MOHRE in the UAE has free contract review services for workers. HRSD in Saudi has worker hotlines. Local employment lawyers offer one-hour consultations at reasonable rates, often worth the investment for senior contracts. Your embassy may also offer guidance. Never sign just to be polite. A good employer will respect you for reading carefully.

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